Crude prices for May delivery fell by over 50 cents to end the previous week at US$80 a barrel, amid volatile trading, as investors scout for clear signals that the global economic recovery will continue. Prices are now 3.8% below a 2010 peak of roughly US$83.18 a barrel. Crude oil for May delivery rose to US$80.49 a barrel in after-hours electronic trading on the New York Mercantile Exchange at the start of this week.
Monday morning saw crude oil prices rise for the first time in four days on expectations of an increase in fuel demand as the global economic recovery strengthened and concerns over Greece’s debt crisis started receding, bolstering the euro. The dollar fell against the euro following a pledge by the International Monetary Fund and European Union to help Greece finance the EU’s largest debt. As this rescue plan reduces concerns of a double dip recession in the Eurozone, the news in bullish for crude. The dollar will continue to be weak because of a long-term policy to keep interest rates low and the money supply high.